Gas infrastructure upgrades for Leongatha

September 25, 2013

Electricity and gas prices are tricky to keep up with for both businesses and households. Australians and others around the world continue to try to make some headway by becoming more efficient with the way they use resources.

One such organisation is Murray Goulburn-Devondale (MG), a dairy producer, is set to increase production by around 100 million litres at a year at Leongatha.

However, instead of this increased output driving up energy use and electricity bills, MG will actually cut its carbon emissions by 31,000 tonnes each year. This initiative is partially funded by the Regional Growth Fund in Victoria.

"This project is critical to helping secure a reliable supply of steam to provide energy, and will underpin MG’s plans to increase UHT capacity at the plant," said deputy premier and minister for regional and rural development, Peter Ryan.

"The energy switch from coal to gas will save the company money and reduce its carbon emissions by 43 per cent, or 31,000 tonnes of carbon dioxide a year at the Leongatha site."

Overall, MG is spending $22 million on upgrading its gas supply and energy infrastructure, with $1.5 million coming from government funding.

Mr Ryan said that not only will the upgrades to the plant help the environment, but the expansion will lead to more exports and more jobs at the plant.

He added that the project will strengthen regional Victoria's economy through its upgrades and gas infrastructure that will benefit more than just the company itself.

The gas infrastructure means that upgraded city gates, 26 connection points and seven kilometres of pipeline will benefit all gas consumers in Leongatha.

MG Chairman Phillip Tracey commented that the upgrades were essential to make the business more competitive.

"It is also critical infrastructure needed to allow MG to expand our UHT capacity at Leongatha by up to an additional 100 million litres," she said.

Other environmentally friendly initiatives have been taking place in Leongatha, with a water recycling project worth $13.5 million. In this case, a plant, recycling equipment for treating and reusing water was constructed at the MG dairy processing plant.

As well as this, a $5.6 million Water and Energy Project meant a steam turbine was installed at the MG plant to generate electricity.

So far, over $80,000 has been saved on energy bills and carbon emissions have been slashed by 1,200 tonnes.